gralbrecht
06-15-2009, 10:13 PM
I want to start by saying thank you to Joe for his magic numbers.
I have been trading Forex in live accounts for over 4 years now and I have had success but not to the extent nor consistantcy I am now thanks to Joe. When I first learned to trade, I was using support and resistance and I would trade in the channels that price action had formed. That is where my success came from but since receiving the bias and key numbers my trading has gone to a new plateau.
I am a visual person by nature so now that I have the overlay program my life as a trader has become so much easier and more profitable. I will now cut to the chase and outline how I am trading and having so much success.
1) I look at the channels that are formed by the overlay program. I add an Oscillator indicator and a Stochastics indicator to my charts. I have been using these 2 indicators for years and have watched price action move in live market conditions just studing how these indicators move and react with price movement. You can use any Oscillator and Stochastics of choice. Use the ones you are most familiar with!
2) I trade off of the Monthly, Weekly, Daily timeframes ultilizing my 15 minute chart for entry. So upon a break of a channel level I want my two indicators to be in agreement with the break ie in this exampl breaking resistance (I want my two indicators pinched in the lower quadrant and start heading up. I look for a crossover of my stochastic indicator to the upside as well as my oscillattor ( RSI, MACD, SMI, CCI, anyone you choose is fine but they too need to moving in the same direction as in this example headed to the upside from the lower quadrant to confirm that both indicators are headed to the upside. Once in the trade I set my stop 5 to 8 pips below or above the previos swing high or low ( in this example since were are looking long it will be below the previous candle and my take profit 1 will always be the 50% mark of the current channel I am trading in. (So for example if the channel I am trading in is 40 PIPS them I take profit 1 at 20 PIPS , take profit 2 at top if broken channel ie 40 PIPS) then I leave last 1/3 of trade open to run.
3) You will notice that once a channel level breaks it will with a very high percentage make it to at least 1/2 way through the channel. It will with still a surprising high percentage go to the opposite end of the broken channel so thus you will have hit take profit 1 and 2 and are in a completely free trade.
4) What prevents me from entering a trade to the upside as an example will be my two indicators. If price is breaking through resistance and my 2 indicators are topped out and turning over to the downside when the break occurs then I do not enter. These are the trades that will go up a few pips and turn back down to the downside so thus they are bouncing on that channel as opposed to breaking it. Joes numbers are incredible so use them in conjunction with your indicators and just trust your indicators and the importance of Joes numbers and just enter the trade. You must pull the trigger each and everytime you see the above detailed trade unfold.
The key is to book profit 1 at 1/2 channel , book profit 2 at the opposite side of channel where the break occurred. and let the last 1/3 of your trade run
5) I manage my stops by having a techincal reason to move it from breakeven + 1 So I use Joes numbers as my technical reason to move my stop into deeper profit. I basically channel hop. So if price moves 3 channels then upon reaching the end of third channel bounce back upi to channel two then proceeds to turn back over in direction of my trade and continue and breaks channel 4 and 5 I would then move my stop to just above the channel level that stopped the retracement. You can use fibs as well but JOES CHANNELS MAKE IT EASY.. So I know this is rambling on and my typing is slow that is why I prefer to chat live on skype. Because I can verbalize this method in a couple of minutes.
It is very simple and I can see what my charts are telling me what to do from across the room.
If my 2 indicators are not in agreement with the direction of price and the corresponding xhannel break or bounce then I simply wait for the next one. There are on average about 5 to 6 solid set ups each day for enteries on the GBP alone so when you gain experience and add more pairs you will have trade set ups all day long on one pair or another.
If anyone needs further clarification you can skype me at pips_for_profit
Good Trading and May The PIPS Be With You
Gary R Albrecht
I have been trading Forex in live accounts for over 4 years now and I have had success but not to the extent nor consistantcy I am now thanks to Joe. When I first learned to trade, I was using support and resistance and I would trade in the channels that price action had formed. That is where my success came from but since receiving the bias and key numbers my trading has gone to a new plateau.
I am a visual person by nature so now that I have the overlay program my life as a trader has become so much easier and more profitable. I will now cut to the chase and outline how I am trading and having so much success.
1) I look at the channels that are formed by the overlay program. I add an Oscillator indicator and a Stochastics indicator to my charts. I have been using these 2 indicators for years and have watched price action move in live market conditions just studing how these indicators move and react with price movement. You can use any Oscillator and Stochastics of choice. Use the ones you are most familiar with!
2) I trade off of the Monthly, Weekly, Daily timeframes ultilizing my 15 minute chart for entry. So upon a break of a channel level I want my two indicators to be in agreement with the break ie in this exampl breaking resistance (I want my two indicators pinched in the lower quadrant and start heading up. I look for a crossover of my stochastic indicator to the upside as well as my oscillattor ( RSI, MACD, SMI, CCI, anyone you choose is fine but they too need to moving in the same direction as in this example headed to the upside from the lower quadrant to confirm that both indicators are headed to the upside. Once in the trade I set my stop 5 to 8 pips below or above the previos swing high or low ( in this example since were are looking long it will be below the previous candle and my take profit 1 will always be the 50% mark of the current channel I am trading in. (So for example if the channel I am trading in is 40 PIPS them I take profit 1 at 20 PIPS , take profit 2 at top if broken channel ie 40 PIPS) then I leave last 1/3 of trade open to run.
3) You will notice that once a channel level breaks it will with a very high percentage make it to at least 1/2 way through the channel. It will with still a surprising high percentage go to the opposite end of the broken channel so thus you will have hit take profit 1 and 2 and are in a completely free trade.
4) What prevents me from entering a trade to the upside as an example will be my two indicators. If price is breaking through resistance and my 2 indicators are topped out and turning over to the downside when the break occurs then I do not enter. These are the trades that will go up a few pips and turn back down to the downside so thus they are bouncing on that channel as opposed to breaking it. Joes numbers are incredible so use them in conjunction with your indicators and just trust your indicators and the importance of Joes numbers and just enter the trade. You must pull the trigger each and everytime you see the above detailed trade unfold.
The key is to book profit 1 at 1/2 channel , book profit 2 at the opposite side of channel where the break occurred. and let the last 1/3 of your trade run
5) I manage my stops by having a techincal reason to move it from breakeven + 1 So I use Joes numbers as my technical reason to move my stop into deeper profit. I basically channel hop. So if price moves 3 channels then upon reaching the end of third channel bounce back upi to channel two then proceeds to turn back over in direction of my trade and continue and breaks channel 4 and 5 I would then move my stop to just above the channel level that stopped the retracement. You can use fibs as well but JOES CHANNELS MAKE IT EASY.. So I know this is rambling on and my typing is slow that is why I prefer to chat live on skype. Because I can verbalize this method in a couple of minutes.
It is very simple and I can see what my charts are telling me what to do from across the room.
If my 2 indicators are not in agreement with the direction of price and the corresponding xhannel break or bounce then I simply wait for the next one. There are on average about 5 to 6 solid set ups each day for enteries on the GBP alone so when you gain experience and add more pairs you will have trade set ups all day long on one pair or another.
If anyone needs further clarification you can skype me at pips_for_profit
Good Trading and May The PIPS Be With You
Gary R Albrecht